how does PE (discretionary) bonus work

Can someone help interpret the language around bonus in my offer letter??

"$xxx bonus, provided that...we would determine the actual amount of the bonus based on your performance"

So, does this mean I'm not guaranteed to receive this amount of bonus, and in reality I might get 50%-80% (or even less) of it? is $xxx my guaranteed bonus, but they just needed to put the "provided..." clause in writing/any downward adjustment in bonus is only if I perform extremely poorly?

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Not totally following initial post. Laying out some facts:

  • Base salary is fixed and paid on a typical cadence (e.g., every 2 weeks)
  • Bonus is paid once per year and discretionary (based on individual performance, firm performance, etc.) though most shops of any scale (thinking LMM+) pay at least on-target (unusual to see someone receive less than target bonus unless materially bad performer or some sort of ethical infraction/fireable offense); particularly stronger performers may receive more (e.g., extra $25-50k or some sort of deal-related bonus)
  • Unless the firm is very small, the language and terms are likely non-negotiable (i.e., base salary is what it is, bonus language will not be amended, no signing bonus, co-invest only if the program already exists for associates)
 

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